Star Cement LTD. vs. State Of Meghalaya
Held
The Court held that the Meghalaya Clinker Cess Act, 2015, had been repealed by the Meghalaya Goods and Services Tax Act, 2017. As a result of this repeal, any cess levied on manufactured clinker produced within the State of Meghalaya under the now-repealed Act of 2015 was impermissible. The Court noted the submission of the learned Advocate General that no recovery had been effected under the repealed Act, which meant there was no outstanding demand or ongoing recovery process. Consequently, the Court found the petition to be rendered infructuous. The operative direction was to dispose of the petition as infructuous.
Facts
The petitioner, Star Cement Limited, filed a writ petition challenging the Meghalaya Clinker Cess Act, 2015, seeking to declare it ultra vires, invalid, void, and unconstitutional. The petitioner argued that the levy of cess on manufactured clinker was beyond the legislative competence of the State legislature and sought to restrain the respondents from realizing the cess. The tax period in question pertains to the period when the Meghalaya Clinker Cess Act, 2015 was in force. The State of Meghalaya and its authorities were the respondents. The core of the dispute revolved around the validity of the cess imposed under the 2015 Act.
Key Issues
1. Whether the Meghalaya Clinker Cess Act, 2015, is ultra vires, invalid, void, and unconstitutional, and consequently, whether the levy of cess on manufactured clinker produced in the State of Meghalaya under this Act is beyond the legislative competence of the State legislature? Petitioner's Arguments: The petitioner contended that the Meghalaya Clinker Cess Act, 2015, was beyond the legislative competence of the State legislature. They further argued that since the Act of 2015 had been repealed, no recovery could be effected under it, and therefore, there was no scope to initiate recovery processes. Revenue/State's Arguments: The learned Advocate General submitted that the Meghalaya Clinker Cess Act, 2015, had been repealed by the Meghalaya Goods and Services Tax Act, 2017. Consequently, as no recovery had been effected, there was no question of a refund petition, rendering the matter infructuous.
Sections Cited
Meghalaya Clinker Cess Act, 2015, Meghalaya Goods and Services Tax Act, 2017
AI-generated summary — verify with the full judgment below
1
Serial No.08 Regular List HIGH COURT OF MEGHALAYA AT SHILLONG
WP(C) No.278/2016
Date of Order: 07.12.2018
Star Cement Limited Vs. State of Meghalaya & ors
Coram:
Hon’ble Mr. Justice Mohammad Yaqoob Mir, Chief Justice Hon’ble Mr. Justice S.R. Sen, Judge
Appearance: For the Petitioner/Appellant(s) : Dr. A Saraf, Sr.Adv with
Mr. P Baruah, Adv For the Respondent(s)
: Mr. A Kumar, Advocate General
Mr. A Kharmawphlang, GA
i) Whether approved for reporting in
Yes/No Law journals etc.: ii) Whether approved for publication in press:
Yes/No
Per Mohammad Yaqoob Mir, ‘CJ’: (ORAL)
It is the submission of learned Advocate General that the Meghalaya Clinker Cess Act, 2015 has been repealed by the Meghalaya Goods and Services Tax Act, 2017. Furthermore, there was no recovery as such no question of refund petition may be dismissed as infructuous.
Learned counsel for the petitioner submits that it is a fact that the Act of 2015 has been repealed in the year 2017. Under the repealed Act, no recovery was effected now there
The judgment continues below.
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